- 1 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 28506 OF 2024 (CS-EL/M) BETWEEN: 1. NERALAGUDDA MILK PRODUCERS CO-OPERATIVE SOCIETY LTD., NERALAGUDDA, SIRA TALUK, TUMKUR DISTRICT-572137 BY ITS PRESIDENT SRI. H. RAVIVARMA AGED ABOUT 48 YEARS REGD. UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT 2. MUSAKALOTI MILK PRODUCERS CO-OPERATIVE SOCIETY LTD. MUSAKALOTI, SIRA TALUK, TUMKUR DISTRICT-572127 BY ITS PRESIDENT SMT. PUTTASIDAMMA W/O LATE JAYANNA AGED ABOUT 58 YEARS REGD. UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT 3. DODDANAHALLI MILK PRODUCERS CO-OPERATIVE SOCIETY LTD. DODDANAHALLI, SIRA TALUK, TUMKUR DISTRICT-572113 BY ITS PRESIDENT SRI. AMARNATH D.M. S/O MARIYANNA AGED ABOUT 45 YEARS Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 REGD. UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT …PETITIONERS (BY SRI. M.R.RAJAGOPAL, SENIOR ADVOCATE FOR SRI. JAI PRAKASH REDDY M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION, M.S. BUILDING, BANGALORE - 560 001 2. THE CO-OPERATIVE ELECTION COMMISSIONER CO-OPERATIVE ELECTION AUTHORITY 3RD FLOOR, SHANTHINAGAR BUS STOP, BENGALURU-560 027 3. THE DEPUTY COMMISSIONER CUM DISTRICT FEDERAL CO-OPERATIVE ELECTION OFFICER TUMKURU DISTRICT MILK PRODUCERS CO-OPERATIVE SOCIETIES UNION LTD. N.H-206, MALLASANDRA POST, TUMKURU-572107 4. THE RETURNING OFFICER/ ASSISTANT ELECTION OFFICER THE TUMKURU DISTRICT MILK PRODUCERS CO-OPERATIVE SOCIETIES UNION LTD. NH-206, MALLASANDRA POST, TUMKURU-572107 5. THE TUMKURU DISTRICT MILK PRODUCERS CO-OPERATIVE SOCIETIES UNION LTD. NH-206, MALLASANDRA POST, TUMKURU-572107 BY ITS MANAGING DIRECTOR REGD. UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT …RESPONDENTS (BY SRI. SMT. PRATHIMA HONNAPURA, ADDITIONAL ADVOCATE GENERAL ALONGWITH SRI. YOGESH D. NAIK, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NOS.1, 3 AND 4; - 3 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 SRI. T.L.KIRAN KUMAR, ADVOCATE FOR RESPONDENT NO.2; SRI. A.C.BALARAJ, ADVOCATE FOR RESPONDENT NO.5;) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ENDORSEMENT DATED NIL IN NUMBER NIL VIDE ANNEXURE-G ISSUED BY THE RESPONDENT NO.5 UNION AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioners have challenged an endorsement at Annexure - G issued by respondent No.5 by which they were shown as ineligible to vote at the elections to the managing committee of respondent No.5. The petitioners have also sought for a writ in the nature of mandamus to direct the respondent Nos.2 to 5 to permit them to cast their votes in the election scheduled on 10.11.2024 for the co-operative years 2024 to 2029. 2. (i) The petitioners are primary societies who are affiliated to respondent No.5. In order to be eligible for the petitioners' representatives to participate and vote in the elections to the Managing Committee of respondent No.5, - 4 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 byelaw No.15.2 of respondent No.5 mandated that the primary societies should supply milk of 150 kgs every day in two shifts for a minimum 270 days in every co-operative year to the Union as per terms and conditions. The petitioners contend that respondent No.5 had issued a show-cause notice/s to them under Rule 13-D(2-A) of the Karnataka Co-operative Societies Rules, 1960 (henceforth referred to as 'Rules of 1960') to show cause as to why they should not be included in the ineligible voters list. The petitioners replied to the said notice/s claiming that they had supplied 150 kgs of milk for 270 days in the last five co-operative years and that due to involvement of sitting Directors of respondent No.5, who colluded with the staff of the chilling centre, to adulterate the milk, the SNF value was below 8.5. They contend that the erring staff of respondent No.5 were placed under suspension and a criminal case is going on against them. Later, respondent No.3 issued notice/s to the petitioners under Rule 13-D(2-A) of the Rules of 1960 to show cause as to why they should not be included in the ineligible voters list. The petitioners replied to the said show cause notice/s and explained as to why there was a shortage in the - 5 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 supply of milk. Nonetheless, respondent No.3 included the petitioners in the ineligible voters list. (ii) The petitioners contend that the respondent No.5 did not reject or return the milk supplied by them and therefore, claim of the respondent No.5 that milk supplied did not carry 8.5 SNF, is unacceptable. They further contend that in Sira Taluk, there was skin tag disease and more than 100 cattle had died during August, 2022 to March, 2023 and that there was a drop in milk production. There was also drop in production of milk due to Covid-19 during the years 2019-20 and 2020-21. They therefore, contend that inclusion of their names in the ineligible voters list, is improper and illegal and therefore, prays that a direction be issued to the respondent No.5 to include their names in the eligible voters list and also permit them to cast their votes in the election to the Managing Committee of respondent No.5. 3. Learned Senior counsel for the petitioners reiterated the above contentions and submitted that the petitioners were only bound to supply 150 kgs of milk every day in last 270 days in two shifts. He contends that ineligibility of the petitioners - 6 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 arise only under two circumstances namely, as provided under Section 20(2)(a-iv) and (a-v) of the Karnataka Co-operative Societies Act, 1959 (henceforth referred to as 'Act of 1959') and the average supply of 150 kgs in the last 270 days is not a condition contemplated under Section 20(2)(a-iv) and (a-v) of the Act of 1959. Besides this, he contends that the petitioners had supplied an average of 150 kgs of milk, which is evident from Annexures - C, C1 and C2 and that respondent No.5 had claimed that the milk supplied by the petitioners did not carry 8.5 SNF and therefore, proportionately reduced the quantity of the milk supplied by the petitioners. He contends that if the total volume of milk supplied by the petitioners is taken into account then, they had satisfied the eligibility criteria for participating in the elections. He contends that staff of respondent No.5 were involved in adulterating the milk supplied by the petitioners and the same is evident from the orders of suspension of tester and other staff of respondent No.5. He therefore, contends that the reduced quality of milk cannot be attributed to the petitioners and this at any rate cannot result in the petitioners becoming ineligible to participate in the elections to the Managing Committee of respondent No.5. - 7 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 4. The learned Additional Advocate General on the other hand submitted that the petitioners were not only bound to supply an average of 150 kgs of milk for 270 days every year but also they were bound to supply quality milk. It is contended that the quality of the milk was prescribed by the Apex Union and the petitioners were fully aware of the same. She contends that the petitioners have not disputed the fact that the milk supplied by them was not of standard quality and therefore, respondent No.5 had proportionately reduced the quantity of milk. She contends that the petitioners have acknowledged this by accepting amounts from the respondent No.5 and appropriate audits of the accounts of the petitioners have also been approved. She therefore, contends that the petitioners cannot now contend that they have complied with the eligibility criteria for being eligible to participate in the elections to the Managing Committee of respondent No.5. 5. The learned counsel for respondent No.5 reiterated the above submissions of the learned Additional Advocate General and submitted that the petitioners were not only bound to supply the milk as prescribed but were also bound to supply - 8 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 quality milk as prescribed by the Apex Union. He therefore, contends that the petitioners were rightly included in the ineligible voters list and therefore, no indulgence can be shown to the petitioners in this writ petition. 6. I have considered the submissions of the learned Senior counsel for the petitioners as well as the learned Additional Advocate General and the learned counsel for the respondent No.5. 7. This Court in terms of interim order dated 23.10.2024, permitted the petitioners to cast their votes in the election scheduled to the Board of Directors of respondent No.5 on 10.11.2024. Accordingly, the petitioners have cast their votes. The results of the election were ordered to be declared in terms of an order dated 07.01.2025 and the results were announced. 8. The petitioners are primary societies and are affiliated to the respondent No.5, meaning thereby that the President and Vice-President of the petitioners could participate in the elections to the Managing Committee of respondent No.5 - 9 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 as delegates. In order to become eligible to participate in the elections, the petitioners were bound to comply with two requirements one of which, was regarding subscribing to the share capital and the other was regarding supply of quality milk as well as 150 kgs on an average in the last 270 days. The petitioners being milk co-operative societies, the minimum service that they could avail from respondent No.5 is to supply atleast the minimum quantity/prescribed quality milk to become eligible to participate in the elections to the Managing Committee of respondent No.5. In this regard, it is apposite to refer to the byelaws of respondent No.5, which contains rights and responsibilities of a member society and the criteria on which, a member could be treated as ineligible to vote in the Annual General Meeting of respondent No.5. 13 Chapter-13 Rights & Responsibilities of a Member Society 13.1 a) Shall supply on an average 150 Kgs quality milk per day to the Union for Atleast 270 days in every cooperative year. b) Shall submit its financial statement within 15 days from date of closure of cooperative year to the Union and obtain the certificate. - 10 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 c) Out of the total milk procured by the member society, shall retain a certain quantity of milk as prescribed by the Union for local sales and remaining quantity of milk shall be supplied to the only Union. d) Shall follow the directions of the Union regarding the place, time of supply, transportation and other subjects related to supply of milk. e) Shall supply pure milk without any adulteration every day to the Union. f) Shall follow the instructions/directions of the Union from time to time. g) A member Society of the Union shall have a right to know about the affairs of the Union. h) Participate and vote in the general meeting of the Union. i) Shall Participate, contest and vote in the election of the Directors of the Union. j) Have access to the books, information and accounts of the Union kept in regular transaction of its business with it. k) Get dividend on distribution of profit. l) Get a copy of the statutory audit report. m) Get a copy of the statutory enquiry or - 11 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 inspection report, if any. n) Suggest action to be taken for rectification of the defects and remedying of the irregularities pointed out in the audit or inquiry or inspection reports. o) Get copies of the notes, information and reports relating to every subject on the agenda of the notice of the general meeting (including the proceedings of the previous general meeting) and get copies of the notes, information and reports that are furnished to the members at the time of conducting general meeting. 15 Chapter-15 Ineligible to Vote in Annual General Body meeting and to participate contest and vote in the election of the Directors Any member society which fails to fulfill the following such member society shall not have a right to vote for one year in the Annual general meeting and to participate, contest and vote in the election of the directors of the Union. 1. Which-fails to attend two out of five last general body meetings. - 12 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 2. Fails to supply milk for minimum 270 days in every cooperative year on an average 150 Kgs Milk to the Union as per the terms and conditions. 3. Failed to utilize such minimum services of facilities as may be specified in the byelaws for any two Co-operative years. 4. If Member society has supplied milk to other Dairy/ Private Dairy in any of the previous 3 Co-operative years. 5. If the member society is continuously defunct for 90 days/ board of management is rescinded/ liquidated. 6. If a member Society has defaulted in the repayment of loan or payment of any other dues, 7. A Society who has become a member of the Union within a period of twelve months immediately prior to date of such meeting/ election of the directors. 9. It is not seriously disputed by the petitioners that the Apex Milk Union prescribes the quality of milk to be supplied by the primary societies. It is also not in dispute that the Apex Union has prescribed that the milk supplied by - 13 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 primary societies should carry minimum of SNF (Solids-Not-Fat) of 8.5%. 10. The petitioners have themselves placed on record the milk supplied by them during the years 2018-19 to 2022- 23. In so far as petitioner No.1 is concerned, from the year 2019-20 till 2022-23, though it had supplied 41538 kgs, 37244 kgs, 24128 kgs and 29338 kgs respectively, since quality of milk did not match the stipulated standard, the same was proportionately reduced to 31661 kgs, 32632 kgs, 18087 kgs and 16296 kgs respectively and the average supply was 117 kgs, 121 kgs, 67 kgs and 60 kgs respectively. The petitioners have not denied the fact that respondent No.5 has made payments only with respect to the above supplies. Likewise, from year 2018-19 till 2022-23, the petitioner No.2 on an average supplied 60 kgs, 83 kgs, 81 kgs, 78 kgs and 50 kgs respectively, while petitioner No.3 supplied 103 kgs, 113 kgs, 99 kgs, 115 kgs and 123 kgs respectively. None of them had denied the fact that respondent No.5 had made payment to them only for the reduced volume of milk supplied. Therefore, the petitioners had clearly violated the byelaw Nos.13.1 and - 14 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 15.2 and thereby became ineligible to vote in the elections to the General Body of respondent No.5. 11. The contention of the petitioners that some officials of the respondent No.5 were involved in adulterating the milk, is not well founded as in the order suspending some officials of the respondent No.5, there is no reference that the milk supplied by the petitioners were adulterated by the officials of respondent No.5. Therefore, nothing much turns on this contention and hence, that contention is liable to be rejected. 12. As held by a co-ordinate bench of this Court in H.S.Raju Vs. State of Karnataka and others [(2022) 4 AKR 775], any dispute regarding constitution of a Managing Committee of Co-operative Society has to be worked out before the competent authority under Section 70(2)(c) of the Act of 1959. Similarly, in Mohammad Beary and Others vs. The State of Karnataka and Others (WP No.29271/2023 and connected matters), another Co-ordinate Bench of this Court has taken the same view. Another Co-ordinate Bench of this Court in Sri.B.Ganganna and others vs. The State of Karnataka and Others [ILR 2024 KAR 1901] took slightly - 15 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 different view by holding that in those cases, where members are egregiously excluded from the list of voters, in such cases, the jurisdiction under Article 226 of the Constitution of India is not ousted. A Division Bench of this Court in Kallappa and others vs. State of Karnataka and others [(W.A.No.100620/2024) (D.D.06.06.2025) has upheld the view in H.S.Raju, Mohammad Beary and Others and Sri.B.Ganganna and others, referred supra. 13. The exercise of jurisdiction under Article 226 of the Constitution of India, is for the limited purpose of ascertaining whether the procedure prescribed in law for treating a member as ineligible to participate in the elections, is followed or not. The inclusion of the name of a member in the ineligible voters list is purely an administrative act between the respondent Nos.5, 3 and the petitioners. If there is any wrongful exclusion or wrongly inclusion in the list of voters, the appropriate remedy is to approach the concerned officer under Section 70(2)(c) of the Act of 1959. In the case on hand, it is seen that the respondent No.5 as well as respondent No.3 have issued appropriate notice/s to the petitioners under Rule 13- - 16 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 D(2-A) of the Rules of 1960 to show cause as to why their names should not be included in the ineligible voters list. The petitioners have replied to those show cause notice/s and therefore, there is clear compliance of Rule 13-D (2-A) of the Rules of 1960 before including the names of the petitioners in the ineligible voters list. The reason assigned by the petitioners assailing their inclusion in the ineligible voters list could certainly not be considered by the Election Officer under the provisions of the Act of 1959. If it is a fact that the petitioners had failed to supply minimum quantity and prescribed quality of milk, it is inevitable that they have to face consequences. In that view of the matter, as there is no disputed question of fact, this Court is of the opinion that the petitioners were rightly included in the ineligible voters list and therefore, they are not entitled to participate in the election to the Managing Committee of respondent No.5. 14. In that view of the matter, this writ petition lacks merit and is dismissed. 15. The Returning Officer shall now exclude the votes cast by the petitioners and issue fresh declaration by counting - 17 - HC-KAR NC: 2025:KHC:42493 WP No. 28506 of 2024 the eligible votes cast. This shall be done within fifteen days from the date of receipt of a certified copy of this Order. 16. In view of dismissal of the petition, pending I.As., if any, do not survive for consideration and the same stand dismissed. Sd/- (R. NATARAJ) JUDGE PMR List No.: 1 Sl No.: 0